ABSTRACT
Regulationists and Institutionalists agree that Fordism (having been the dominant mode of production during the twentieth century) is now in decline and is being replaced by more flexible modes of production. This chapter explores Fordism, drawing upon the Regulationist and Institutionalist explanations for its rise and decline. It then concentrates upon the replacement of Fordism, exploring the two contrasting theoretical viewpoints of this phase of 'flexible' production. During the Fordist era, multinational corporations became dominant and the region became the secondary location for economic activity. Piore and Sabel (1984) argue that due to changing consumer demands there has recently been a breakdown in mass production. During recent years the focus of attention in Marxist discussion has shifted away from the issue of capitalism in crisis to the question of capital restructuring. The Institutionalist School and the theory of Regulation agree that Fordism is being replaced by a more flexible mode of production.
